Japan cancels funding for Indramayu coal power plant

Jakarta – Japan cancels loan to finance the construction of coal-fired power plants in Indonesia, officials said Thursday (23/6). The loan was also canceled for the construction of the Matarbari coal fired power plant in Bangladesh.

Press Secretary of the Japanese Ministry of Foreign Affairs, Hikariko Ono in a written statement said that the policy was taken in response to international criticism of coal-fired power plants, which are the main source of greenhouse gas emissions blamed for causing global warming.

“We decided that we could not continue further support for these projects (PLTU 2 Indramayu and PLTU Matarbari) as subject to yen loans,” she said.

Ono said the Japanese government will continue to assist developing countries in their efforts to create a carbon-free society. As is known, Indonesia and Bangladesh are currently conducting the survey phase for these projects with the support of Japan, but they are still in the planning stage and have not yet progressed to construction.

The G7 countries previously agreed to end their funding support for coal-fired power plants in 2021. And previously Japan also insisted on maintaining the ongoing coal-fired power plant project, triggering international pressure from pro-environment groups and assuming that the G-7 countries violated their commitments. The G-7 consists of Britain, Canada, France, Germany, Italy, Japan and the United States, plus the European Union.

As additional information, the Japanese government agency, the Japan International Cooperation Agency (JICA) is said to be providing funding for the construction of a new PLTU unit in Indramayu Regency, West Java, amounting to 1,000 MW. Previously, Japan also invested in PLTU Indramayu 1, which has been operating since 2010, with a capacity of 990 MW. Japan’s funding plan is also said to be in stark contrast to the current world trend towards cleaner energy. (Hartatik)

Banner photo: Nai Rungrueang/shutterstock.com

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